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Aggregate Demand

AD=C+I+G+X-M
C=Consumer Spending in Society (societal demand)
I = Investors (Spending by firms on infrastructure, technology)
G= Government Expenditure
X= how much money foreigners are spending on us
M= But we need to subtract the amount of money we are spending on foreign
countries (Net exports)
Leakages and Injections
Leakages slow down the economy, funds leaking out.

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